What changed for the market while you were sleeping? Top 12 things to know

The market fell sharply on December 10 with the Sensex losing more than 700 points after mixed outcomes from exit polls. Weak global cues amid rising tensions between the US and China also dampened market sentiment.

The Nifty50 closed below psychological 10,500 levels, forming small bearish candle on the daily charts on Monday. Traders retained their cautious stance ahead of outcome of five states' elections which is scheduled to be announced on December 11, and after Urjit Patel resigned as RBI governor.

"The short term trend of Nifty is dicey. All eyes on tomorrow's 5 states assembly election results, which are expected to be out completely by noon," Nagaraj Shetti, Technical Research Analyst at HDFC securities said.

Kotak said if the BJP wins Chhattisgarh, Madhya Pradesh and Rajasthan (3-0) or Chhattisgarh and Madhya Pradesh (2-1) then there could be a moderate market rally, subject to global developments with the market ascribing a higher probability of the BJP winning the national elections in April-May 2019.

India VIX moved up sharply by 10.85 percent at 20.60 levels. Volatility has closed at recent highest zone since October 31, 2018.

According to Pivot charts, the key support level is placed at 10,456.07, followed by 10,423.63. If the index starts moving upward, key resistance levels to watch out are 10,539.87 and then 10,591.23.

The Nifty Bank index closed at 26,102.65, up 491.65 points on December 10. The important Pivot level, which will act as crucial support for the index, is placed at 26,004.4, followed by 25,906.1. On the upside, key resistance levels are placed at 26,268.6, followed by 26,434.5.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.

Wall Street ended Monday’s volatile session slightly higher with help from technology stocks although bank stocks tumbled and uncertainty over Britain’s exit from the European Union kept investors on edge about global growth. The energy index was the S&P’s biggest percentage loser as oil prices declined and financial stocks tumbled with the S&P 500 bank index confirming it was in bear territory.

The Dow Jones Industrial Average rose 34.31 points, or 0.14 percent, to 24,423.26, the S&P 500 gained 4.64 points, or 0.18 percent, to 2,637.72 and the Nasdaq Composite added 51.27 points, or 0.74 percent, to 7,020.52.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a plunge of 169 points or 1.61 percent. Nifty futures were trading around 10,349-level on the Singaporean Exchange.

US shares staged a late rebound in a positive signal for Asian markets. MSCI’s broadest index of Asia-Pacific shares outside Japan skidding more than 16 percent so far this year. It had surged 33.5 percent in 2017. The index was last off 0.1 percent. Australian shares gained 0.6 percent while Japan's Nikkei lifted 0.2 percent.

Urjit Patel has resigned as the Reserve Bank of India (RBI) governor, nine months before his tenure was to end in September 2019, ending a 27-month long stint at Mint Street rocked by a testy debate on the central bank’s autonomy.

"On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the RBI in various capacities over the years," Patel said in a statement.

“The support and hard work of RBI staff, officers and management has been the proximate driver of the Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future,” Patel said.

Sterling tumbled to its weakest since April 2017 on Monday after Prime Minister Theresa May pulled a parliamentary vote on her Brexit deal with the European Union, panicking investors about deepening political uncertainty in Britain.

May said on Monday she was delaying the planned vote as her deal would likely be rejected “by a significant margin”. Colleagues had told May that she faced a rout in the vote, that was set for Tuesday.

May said she would do all she could to secure further assurances from the EU on the so-called backstop arrangement, a crucial part of the deal bitterly opposed by many of her fellow conservatives and opposition parties.

In the backdrop of RBI Governor Urjit Patel's resignation, Moody's Investors Service said the independence of a country's central bank is an important consideration while assessing a country's institutional strength and any attempt by the government to curtail it would be credit negative.

Patel resigned from the post citing personal reasons. Patel, whose three-year term was to end in September 2019, is the first governor since 1990 to step down before his term ended. It said that Moody's assumes that the RBI will continue to pursue price and financial stability and implement policies towards these goals.

Capital markets regulator SEBI and the stock exchanges have stepped up their surveillance systems to keep manipulative forces in check amid an extreme volatility expected on December 11 due to the sudden resignation of RBI Governor Urjit Patel and the state assembly results.

After a sharp plunge of over 700 points in the benchmark Sensex on December 10 tracking the exit poll results for five states, analysts have warned that the final results showing declining votes for the ruling BJP and Patel's resignation could trigger even a bigger loss for the markets on December 11.

Officials said that the exchanges and the regulator have beefed up their monitoring and surveillance mechanism for any eventuality, while applicable circuit limits are already in place for key indices and stocks.

Indian markets may be swayed by the unfolding political scenario and global cues in the near-term, but the volatility will present an opportunity for portfolio managers to build positions and prepare themselves for the next three-five years, according to a report.

According to an equity market outlook report for December by Kotak Mahindra Asset Management Company, equity will continue to be one of the outperforming assets over the next three-five years.

"In the immediate term, the market is likely to be driven by our political events and also global cues. Whatever volatility that will get presented because of political events would be used to build long-term portfolios," Kotak Mahindra AMC's chief investment officer, Harsha Upadhyaya, told reporters.

Liquor baron Vijay Mallya will be extradited from the United Kingdom to India, a London court has ruled on December 10. Mallya is wanted in India for defaulting on loans worth Rs 9,000 crore of his failed Kingfisher Airlines. The matter of Mallya’s extradition will be referred to UK’s Secretary of State.

"My settlement offer is made before the Karnataka High Court. It is not related to this extradition trial. Nobody disrespects a court of law by making a bogus offer. The assets have been attached by the ED so they cannot be bogus assets," he said, asserting that his offer to repay the principal amount was not bogus.

The Indian rupee on December 10 tumbled 50 paise to close at 71.32 against the US dollar as nagging worries on global trade war front and uncertain crude prices hurt forex market sentiment.

Besides, the trading pattern in the forex market was impacted by massive sell-offs in domestic equities as investors panicked over exit polls suggesting the Congress giving a tough fight to the ruling BJP in state elections.

The rupee opened lower at 71.28 against the US dollar and dropped further to 71.44. The Indian unit hit a high of 71.23 during the day.

Oil prices remained on shaky ground on Tuesday after sliding by 3 percent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply. US West Texas Intermediate (WTI) crude futures were at $51 per barrel at 0028 GMT, unchanged from their last close.

Shyam Metalics and Energy, a leading integrated metal producing company, has received SEBI's go-ahead to raise Rs 909 crore through an initial public offer (IPO). The company, which had filed IPO papers with the capital markets watchdog in August, obtained its "observations" on December 7, as per the latest update with the Securities and Exchange Board of India (SEBI).

It plans to utilise the proceeds for payment of debt, including that of its subsidiary SSPL and for other general corporate purposes. ICICI Securities, Edelweiss Financial Services, IIFL Holdings and JM Financial are the merchant bankers to the issue.

Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

For December 11, 2018, Adani Enterprises and Adani Power are present in this list.